Market Sitting Under Resistance For Now
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The market has seen very sloppy wave action over the past several days and has yet to give us confirmation that we have indeed put in a top in either the wave 1 or larger wave (5). We are trading up today after moving lower overnight but are still trading under the key resistance zone that is keeping the b wave retracement count on the board. We now simply need to wait and see if the market is going to be able to hold this resistance level and turn back lower under the support/pivot zone, or if the market is going to break through that level and give us yet another high.
As previously noted, I am watching the 7500 level as the next key overhead resistance level, and this would be the ideal spot to hold for the white wave b. If that level breaks, then the 88.6 retrace comes in at the 7522 level, and moving through that level would suggest we are indeed going to see another higher high before any lasting top is found. We would need to move back under the 7408 level, followed by a break of the 7377 level on five waves, to give us initial confirmation that the b wave top has been formed and we are heading lower toward the 7199-7079 zone below.
If we do break over the resistance levels noted above, then we likely see a higher high, at which point the 7600-7700 zone would be the next key resistance/target zone overhead.
For now, we simply need to wait for the market to tip its hand and keep an eye on the parameters, which at this point are fairly straightforward.
